UPDATE ON OUR CBN REPORT: REGULATOR BANK CLARIFIES STAND ON DEREGULATION

GOVERNOR LAMIDO SANUSI.

The Central Bank of Nigeria Thursday clarified its stand on the planned deregulation of the downstream sector.

In a press statement titled “CBN SUPPORTS DEREGULATION”, signed by its Head of Corporate Affairs, M.M. Abdullahi, he said the Apex Bank was completely behind government’s proposed deregulation.

THEWILL and some other media had earlier reported that the Bank was wary of the planned deregulation’s effect on inflation. The governor had said in a note made available to the press after the Monetary Policy Committee meeting that:

“The Committee observed that while inflation has decelerated, it is important to recognize that seasonal factors and the planned deregulation of the prices of petroleum products pose a major risk to inflation outlook in the near to medium term.  It is this context that heightens the criticality of the policy dilemma now being faced by the Central Bank of Nigeria (CBN).”

Our report tagged “NIGERIA’S CBN WARNS AGAINST DEREGULATION” was published on Wednesday, November 4, 2009 edition.

Editor's note; We stand by our report, and welcome the Bank’s clarification of its position on this issue.